Genesis Mining Update #2: 22 Days After Upgrading to 50.205 TH/s Open-Ended Bitcoin Mining
This is my review after upgrading my BTC mining to 50.205 TH/s with Genesis Mining. This post is based on my experience and results thus far with Genesis Mining. This post is not meant to be investment advice. Your results may vary based on the many factors associated with cryptocurrency mining contracts. This post is an update to my "Genesis Mining: 6 Days After 10 TH/s Bitcoin Mining Upgrade" post made 2 months ago.
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Why Bitcoin Mining
Bitcoin mining will continue until the number of Bitcoins reaches 21 million. It is estimated that the last Bitcoin will be mined in the year 2140.
The Bitcoin mining contract offered by Genesis Mining is an open-ended contract. According to Genesis Mining the Bitcoin mining will continue as long as it is profitable.
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Next Halving
Bitcoin halving events occur every 210,000 blocks, roughly every four years. The Bitcoin Block Reward Halving Countdown clock current has the next having occuring in June of 2020.
I was Bitcoin mining during the last Bitcoin halving. Yes, my payout did get cut in half.
Stream of Income
I have been mining with Genesis Mining since June 2016. Mining with Genesis has given me a daily income stream. And that is my goal to have a daily income stream.
Current Hash Power and Returns
I initially started Bitcoin mining at Genesis Mining with 0.15 TH/s. After about 6 months at this rate to assess the viability and reliability of Genesis Mining, I decided to upgrade my hash rate. I bought a contract to add 10 TH/s to my overall hash rate for mining Bitcoin. A fellow Steemian was kind enough to use my affiliate promotion code, Q1MYO7, for a 3% discount off their upgrade purchase. Their upgrade purchase gave me another 0.01 TH/s of hash power. Since then I have done several more upgrades.
On 14 March 2017 my total hash power stood at 50.205 TH/s for a total cost of 5.717 Bitcoins. Here are the results and projections based off of 22 days at the hash power of 50.205 TH/s.
In the following graph I plotted the individual daily payouts with the mean and upper/lower statistical limits (USL/LSL) three standard deviations from the mean.
Created Using MS Excel
The Bitcoin payouts from 15 March thru 18 March 2017 coincide with the heavy volume during the Bitcoin price decline. Since 18 March 2017 the Bitcoin mining daily payouts have been consistently staying within the upper/lower statistical limits.
| Daily Average Payout (BTC) | Monthly Projected Payout (BTC) | Yearly Projected Payout (USD) |
|---|---|---|
| 0.01332470 | 0.39974085 | 4.86351368 |
The average daily payout with 50.205 TH/s is 0.01329338 BTC. Based on my accumulated Bitcoins since I started Bitcoin mining in June 2016 and using the current average daily payout my break even date is 24 April 2018. This is well ahead of the next halving in June of 2020.
My Goal for a Daily Income Stream
I have exceeded my initial goal of $10 USD per day. My next goal is to have a daily income stream of $20 USD a day. For that I estimate I will need to upgrade my BTC mining hash power by a bit more than 16 TH/s (based on the current Bitcoin price).
I plan to finish upgrading my BTC Genesis Mining hash power a bit more in April. After completing my upgrade cycle I will monitor the payouts again to put together another post.
Pitfalls of Cryptocurrency Mining Contracts
Based on my experience with cryptocurrency mining contracts here is what I have learned from the school of hard-knocks:
- Do not start a Bitcoin mining contract before a halving event. This is a sure way to at best lengthen your period of time before you break even and at worst ensure you do not break even.
- If the price of the cryptocurrency being mined declines, then your period of time to break even will be lengthened. If the price never recovers, then you are extremely unlikely to break even.
- Because a daily fee is associated with some mining contracts like Genesis Mining's Open-Ended Bitcoin mining contract ("USD 0.00028 per GH/s and day, deducted on a daily basis from the generated Coins"), it is possible for a mining contract to go underwater. If this happens you will cease to see a payout until the fees are covered. This typically happens when the price of the cryptocurrency is in a prolonged and extended downturn.
Genesis Mining
If you are interested in learn more about Genesis Mining then click here to visit their website.
If you have an account at Genesis Mining, you will recieve a 3% discount on your next upgrade using promo code Q1MYO7
You can pay for your mining contracts at Genesis Mining using Credit Card, Bitcoin, Dash, Litecoin, and Dogecoin.
Coinbase
I buy my Bitcoins through Coinbase. For me, buying Bitcoins through Coinbase is fast, secure, and convenient.
Sources
Bitcoin Wiki: Controlled supply
Bitcoin Block Reward Halving Countdown
How do you mine litecoin on genesis? I keep selecting litecoin and it defaults back to bitcoin on my miner allocation
I will start with a simple question: After you changed your mining allocation did you click "Save Allocation"?
I forgot to click "Save Allocation" when I first changed it to payout in LiteCoin.
I just checked to see if my payouts in LiteCoin are happening. I am getting LiteCoin payouts every two days. You have to have a payout of at least 0.001 to get a LiteCoin payout.
Let me know if that answers your question.
Have a great day!
Steem on,
Mike
Yes but then it says I have no open orders so I cant change my hashing power
Did you buy a mining contract? If so, which one?
When you go to the "Mining Allocation" page, you need to click select on the Mining Contract that you are mining. Then you can select your mining allocation percentage. Just remember to click "Save Allocation".
The first time I setup my mining allocation I also forgot to select the mining contract first.
I hope that helps, let me know.
Mike
No I wanted to mine litecoin open ended. No contract. I wanted to test it out first. Trying to mine some coin to buy my own miner Ebit Ebang E9 - $950 for 6.5 TH. Feel free to dontate some SBD if your interested. I would like to blog about the experience here on Steemit. I am a big believer in mining, its just hard to get started. I've done a lot of research and I think I could make a masternode with this. Then I would like to be my own masternode. What are your thoughts on this? Maybe I could do a quick crowdfund on Steemit too. It's a thought in progress...I tend to learn by doing. I started an angel account but havn't done much with it yet at https://angel.co/miner-disruption
You sound more capable than I with mining equipment. I know that by keeping it simple I give up some of the benefits of mining, but for me simply buying a Genesis Mining contract is the way to go. I don't have to worry about maintaining the equipment, electricity cost, and keeping the equipment properly cooled.
I will stick with my Genesis Mining contracts. I know it is not for everyone, but it is simple enough for me.
You could do a crowdfund on SteemIt. I have seen it done before.
I wish you well in building your own masternode.
Steem on,
Mike
Thanks for the all this info @etcmike. Did you publish another update as to how your GM contract has been going? If yes, could you please point me to it? It would be great to know how the contract's been working out. Thanks.
Yes, here is my latest report:
https://steemit.com/review/@etcmike/genesis-mining-review-6-11-days-after-upgrading-to-70-9525-th-s-open-ended-bitcoin-mining
Thank you :)
0.1 BTC free for mining-you can buy 9 th/s lifetime , offer limited time https://seebit.io/?r=56086